Does selling turn key rentals make much sense anymore?

[Dan Zitofsky]

After being at this for 28 years and a few thousand transactions, I’m starting to think the best way to help others build passive wealth is not selling them turn key rentals any longer. There’s too many things I can’t control once I sell. (Management, Contractor’s, etc) unless you decide to keep all of this in house, which I don’t think is a good idea for me.

I just recently sold off a larger pool of REOs I acquired from the bank. I sold about 70% of them for cash and the rest I held seller financing to investors who wanted to rehab and rent them and enjoy that equity. I even had one newer investor who asked me to mentor him on the rehab and to get the property performing. What a great project that was.

This was much cleaner for me and I know I’m taking care of the investor so didn’t worry about losing any relationships because the property manager or contractor I had may not be doing a good job.

I’m ok making less money as long as my investors are taken care of and will always put them first. Just some thoughts to see what others think as my business model has been long term passive wealth now for many years.